At a recent state-owned enterprise recapitalization promotion meeting held in Hangzhou, Wanxiang Group and the Changchun City State-owned Assets Management Committee signed a framework agreement to participate in the reorganization of state-owned property rights at Changchun Clivia Group Co., Ltd. and establish an auto parts base in the Northeast region of Changchun. The project involves over 3 billion yuan in funding and is considered the largest private investment from Zhejiang Province in Changchun to date, according to Mayor Zhu Yejing.
Clivia Group is a major auto parts manufacturer in Changchun, with annual sales reaching approximately 1 billion yuan. It primarily supplies FAW with bumpers, fuel tanks, and other components. With the expansion of its production scale, Clivia urgently needs capital, and Wanxiang, known for its strong financial resources, found a perfect match.
Xue Wenge, deputy director of the Changchun City Economic and Trade Commission, highlighted that through the reorganization of Clivia’s state-owned assets, Wanxiang will gain the opportunity to expand into the Northeast at a lower cost. This collaboration also allows the local auto parts industry to adopt more flexible management practices from private enterprises, creating a win-win situation.
Changchun, a key old industrial base in Northeast China, has a motor industry that accounts for 78.8% of the city's total industrial output. There are over 200 auto parts companies supporting FAW Group. Last year, FAW produced 900,000 vehicles, and after cooperating with Volkswagen, it is expected to reach 1 million units annually within five years, making up one-third of the country’s total automobile production.
In 2023 alone, Zhejiang-based enterprises contributed 3 billion yuan in spare parts output value for Changchun’s automotive industry. Currently, nearly 40 Zhejiang-Changchun enterprises have expressed cooperation intentions in the auto parts sector. To date, Changchun has introduced 202 Zhejiang-based state-owned enterprises for recapitalization, involving 35.8 billion yuan in assets, including 31 billion yuan in state-owned assets.
State-owned assets currently make up more than 60% of the city's total. In order to accelerate SOE reforms, Changchun has introduced a series of preferential policies, requiring foreign capital participation in reforms and reorganizations. Enterprises that bring in capital accounting for over 30% of total shares or achieve profitability in the reform year may receive tax incentives.
This partnership marks a significant step forward in strengthening Changchun’s auto industry and deepening regional economic cooperation between Zhejiang and Northeast China.
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